FAQs
Questions about Contact Litigation Insurance? Below are some frequently asked questions about CLI.
If you would like more information, please contact us today!

What Coverage does the Policy Offer?
Contract Litigation Insurance lets you avoid the risk of paying your adversary's attorney's fees in contract litigation. Often contracts contain a "fee shifting" or "prevailing party" provision stating that the winning party in litigation is entitled to recover their attorney's fees (and other costs) from the loser. CLI is available to both plaintiffs and defendants who wish to manage their litigation risks arising from such provisions.
 
When can a Litigant Purchase or Apply for a Policy?
Any litigant in a breach of contract lawsuit may purchase or apply for a CLI policy. The most cost effective time for a plaintiff to apply for a CLI policy is within the first 60 days of the initial filing of the lawsuit. The most cost effective time for a defendant to apply for a CLI policy is within 60 days of service of the complaint.
 
After these optimal purchase periods have expired, an applicant may still apply for CLI coverage but the price to procure coverage may increase and the ability to place coverage may decrease.
 
What is Required for a Policy Application?
Applications are evaluated on an individual basis. The requirements include:
 
1. A "file stamped copy" of the complaint displaying the date on which the complaint was filed;
2. A copy of the underlying contract;
3. A completed one page CLI policy application
 
What is the Appropriate Amount of Coverage?
It is impossible to know how much your adversary will spend on litigation. However, it is usually safe to assume that your opposing party hires comparable counsel they will spend roughly the same amount on legal fees as you do. Contact us for a list of typical questions to consider when evaluating how much coverage you need.
 
What is the Duration of the Coverage?
The coverage lasts the duration of the covered litigation. When the covered litigation terminates, the policy expires.
 
What Triggers the Policy?
At the close of a trial or contested summary judgment, the opposing party must be found to be the prevailing party. The policyholder will then be ordered by the court to pay attorney's fees for the opposing party.
 
Do I Already Have Coverage From My Existing Policies?
No. You may already have a commercial general liability policy ("CGL"), errors and omission policy ("E&O"), or other insurance that can cover certain defense costs. However, these coverages do not protect against the financial exposure of having to pay an adversary's attorneys' fees.